Investment Securities (Tables)

9 Months Ended

Sep. 30, 2019

Investments, Debt and Equity Securities [Abstract]

Realized Gain (Loss) on Investments [Table Text Block]

Certain information concerning the sale of debt securities, available-for-sale, for the three and nine months ended September 30, 2019 and 2018 was as follows (in thousands):

	Three Months Ended   September 30,			Nine Months Ended   September 30,
	2019		2018	2019	2018
Proceeds from sales	$	25,105	5,202	75,407	8,545
Gross realized gains	84		14	212	21
Gross realized losses	104		21	249	29

Amortized Cost and Fair Value of Available-for-Sale Investment Securities

The amortized cost and estimated fair value of equity and debt securities at September 30, 2019 and December 31, 2018 are summarized as follows (in thousands):

	Amortized Cost		Unrealized Gains	Unrealized Losses	Fair Value
September 30, 2019
Debt Securities, Available-for-Sale:
U.S. Treasury notes	$	2,274	38	—	2,312
U.S. Agency notes	48,766		336	59	49,043
U.S. Agency mortgage-backed securities	84,665		630	233	85,062
Municipal securities:
Non-taxable	38,214		145	68	38,291
Taxable	16,196		331	5	16,522
	$	190,115	1,480	365	191,230
Debt Securities, Held-to-Maturity:
Municipal securities:
Non-taxable	$	25,934	208	17	26,125
Taxable	8,097		194	—	8,291
	$	34,031	402	17	34,416
December 31, 2018
Debt Securities, Available-for-Sale:
U.S. Treasury notes	$	2,278	—	43	2,235
U.S. Agency notes	80,708		—	2,368	78,340
U.S. Agency mortgage-backed securities	57,584		7	1,981	55,610
Municipal securities:
Non-taxable	86,059		77	1,422	84,714
Taxable	17,654		102	234	17,522
	$	244,283	186	6,048	238,421
Debt Securities, Held-to-Maturity:
Municipal securities:
Non-taxable	$	26,021	84	635	25,470
Taxable	3,700		—	146	3,554
	$	29,721	84	781	29,024

Securities in a Continuous Loss Position

Information concerning debt securities with gross unrealized losses at September 30, 2019 and December 31, 2018, aggregated by length of time that individual securities have been in a continuous loss position, is as follows (dollars in thousands):

	Less than Twelve Months			Twelve Months or Greater
	Fair Value		Unrealized Losses	Fair Value	Unrealized Losses
September 30, 2019
Available-for-Sale:
U.S. Treasury notes	$	—	—	—	—
U.S. Agency notes	—		—	21,900	59
U.S. Agency mortgage-backed securities	2,818		2	21,758	231
Municipal securities:
Non-taxable	13,061		47	1,492	21
Taxable	—		—	4,048	5
	$	15,879	49	49,198	316
Held-to-Maturity:
Municipal securities:
Non-taxable	$	991	1	2,649	16
Taxable	—		—	—	—
	$	991	1	2,649	16
December 31, 2018
Available-for-Sale:
U.S. Treasury notes	$	—	—	2,235	43
U.S. Agency notes	4,988		7	73,351	2,361
U.S. Agency mortgage-backed securities	137		—	55,217	1,981
Municipal securities:
Non-taxable	14,264		49	58,211	1,373
Taxable	—		—	14,407	234
	$	19,389	56	203,421	5,992
Held-to-Maturity:
Municipal securities:
Non-taxable	$	366	1	18,588	634
Taxable	400		1	3,154	145
	$	766	2	21,742	779

Investments Classified by Contractual Maturity Date

Contractual maturities of debt securities at September 30, 2019 were as follows (in thousands).  Actual maturities may differ from contractual maturities when issuers have the right to call or prepay obligations.

	Available-for-Sale			Held-to-Maturity
	Amortized Cost		Fair Value	Amortized Cost	Fair Value
Due within one year	$	9,983	9,981	2,535	2,539
Due from one to five years	63,472		63,712	7,876	7,994
Due from five to ten years	30,291		30,756	8,495	8,511
Due after ten years	1,704		1,719	15,125	15,372
	105,450		106,168	34,031	34,416
U.S. Agency mortgage-backed securities	84,665		85,062	—	—
	$	190,115	191,230	34,031	34,416

Schedule of Debt Securities, Trading, and Equity Securities, FV-NI

The amortized cost and estimated fair value of equity securities with a readily determinable fair value at September 30, 2019 and December 31, 2018 are summarized as follows (in thousands):

	September 30, 2019			December 31, 2018
	Amortized Cost		Fair Value	Amortized Cost	Fair Value
Mutual funds	$	1,364	1,341	1,651	1,559
Equity securities	755		925	471	519
Total equity securities with a readily determinable fair value	$	2,119	2,266	2,122	2,078

Schedule of Equity Securities, Changes in Fair Value

quity securities with a readily determinable fair value are carried at fair value, with changes in fair value recognized in other operating income in the consolidated condensed statements of income. Equity securities without a readily determinable fair value are measured at cost minus impairment, if any, plus or minus any changes resulting from observable price changes in orderly transactions, as defined, for identical or similar investments of the same issuer. LCNB was not aware of any impairment or observable price change adjustments that needed to be made at September 30, 2019 on its investments in equity securities without a readily determinable fair value.

The amortized cost and estimated fair value of equity securities with a readily determinable fair value at September 30, 2019 and December 31, 2018 are summarized as follows (in thousands):

	September 30, 2019			December 31, 2018
	Amortized Cost		Fair Value	Amortized Cost	Fair Value
Mutual funds	$	1,364	1,341	1,651	1,559
Equity securities	755		925	471	519
Total equity securities with a readily determinable fair value	$	2,119	2,266	2,122	2,078

Certain information concerning changes in fair value of equity securities with a readily determinable fair value for the nine months ended September 30, 2019 and 2018 is as follows (in thousands):

	Nine Months Ended   September 30,
	2019		2018
Net gains recognized	$	207	12
Less net realized gains on equity securities sold	17		25
Unrealized gains (losses) recognized and still held at period end	$	190	(13	)